--- title: 8 States That Tax Social Security Benefits, and Where to Retire Instead description: Here are eight states that still tax Social Security benefits, plus which residents there don't have to pay. authors: - name: Marc Guberti url: https://money.com/author/marc-guberti/ bio: Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. at_money_since: 2024 articles: 450 covers: - Retirement - Banking - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Shopping - Taxes published: '2026-10-28T13:00:25.000Z' section: Retirement word_count: 555 canonical: https://money.com/states-that-tax-social-security-benefits/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Happy senior couple in their empty new apartment](https://img.money.com/2026/10/Explainer-8-States-Social-Retire.jpg) Most states do not tax Social Security benefits, but there are eight states that are the exceptions to the rule. While most of these states have some clauses that make certain individuals exempt from paying taxes on benefits, knowing if your state is on the list can help you with retirement planning, especially if you’re planning to move. For some people, relocating may be the right choice. ## Which states tax Social Security? These are the eight states that tax Social Security benefits and which residents in those states actually end up paying: - **Colorado**: Citizens who are 65 years or older can subtract 100% of their federally taxable Social Security benefits from their Colorado state income tax. People who are 55-64 years old can deduct up to $95,000 if married and filing jointly or up to $75,000 if they are single filers. - **Connecticut**: An exemption applies for married couples filing jointly if their adjusted gross income (AGI) is below $100,000 and for single filers with less than $75,000 in AGI. No more than 25% of Social Security benefits are taxed for citizens who exceed the AGI thresholds. - **Minnesota**: Exemption applies for married couples earning less than $108,320 and single filers who earn $84,490 or less. - **Montana**: A $5,500 subtraction from federal taxable income applies for taxpayers who are 65 years or older. - **New Mexico**: Exemption applies for single filers who earn up to $100,000 per year and married couples filing jointly who earn less than $150,000 per year. - **Rhode Island**: Joint filers only pay taxes on Social Security if their AGI exceeds $133,750. Single filers pay taxes on Social Security if their AGI exceeds $107,000. - **Utah**: A retirement tax credit of $450 is available for people born on or before Dec. 31, 1952 who do not claim the Social Security benefits credit or the Military Retirement credit. - **Vermont**: Married couples filing jointly get a full or partial exemption if their AGI is less than $80,000. That figure is $65,000 for single filers. ## The newest tax-free state West Virginia recently exempted Social Security benefits from taxation. The new rule started in the tax year 2026, and the state used a gradual phase-out approach to make this law possible. Initially, 35% of Social Security benefits were exempt in 2024, followed by 65% of Social Security benefits being exempt in 2025. Now, all Social Security benefits are exempt from taxation in West Virginia. ## Where to retire instead It’s possible to be exempt from Social Security taxes even if you live in one of those eight states. However, if you have to pay taxes on Social Security, chances are you are reporting a high annual income. In that case, no-income tax states like Florida, Texas, Tennessee, and Nevada may be right for you. However, a no-income tax state isn’t always the best one for your finances. For instance, some states compensate for no income taxes by having elevated property taxes and sales tax. Compare those taxes with your local area to determine if moving is the right move. The taxes you pay on your benefits are one part of the equation. Comparing areas can help you determine if a move makes sense. However, if paying some taxes on benefits does not affect your ability to keep up with living expenses, staying where you are may also be the right choice. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/states-that-tax-social-security-benefits/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Retirement", "item": "https://money.com/retirement/" }, { "@type": "ListItem", "position": 3, "name": "Social Security", "item": "https://money.com/social-security/" }, { "@type": "ListItem", "position": 4, "name": "8 States That Tax Social Security Benefits, and Where to Retire Instead" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/states-that-tax-social-security-benefits/#webpage", "url": "https://money.com/states-that-tax-social-security-benefits/", "name": "8 States That Tax Social Security Benefits, and Where to Retire Instead", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-10-28T13:00:25.000Z", "mainEntity": { "@id": "https://money.com/states-that-tax-social-security-benefits/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/states-that-tax-social-security-benefits/#breadcrumb" } }, { "@type": "Article", "headline": "8 States That Tax Social Security Benefits, and Where to Retire Instead", "articleSection": "Retirement", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2026/10/Explainer-8-States-Social-Retire.jpg", "width": 2121, "height": 1414, "caption": "Explainer-8-States-Social-Retire" } ], "author": [ { "@type": "Person", "name": "Marc Guberti", "url": "https://money.com/author/marc-guberti/", "@id": "https://money.com/author/marc-guberti/#author", "description": "Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations.", "worksFor": { "@id": "https://money.com/#organization" } } ], "publisher": "https://money.com/#organization", "datePublished": "2026-10-28T13:00:25.000Z", "description": "Here are eight states that still tax Social Security benefits, plus which residents there don't have to pay.", "abstract": "Here are eight states that still tax Social Security benefits, plus which residents there don't have to pay.", "@id": "https://money.com/states-that-tax-social-security-benefits/", "inLanguage": "en-US", "wordCount": 555, "about": [ { "@type": "Thing", "name": "Retirement", "sameAs": [ "https://en.wikipedia.org/wiki/Retirement" ] }, { "@type": "Thing", "name": "Social Security (United States)", "sameAs": [ "https://en.wikipedia.org/wiki/Social_Security_(United_States)" ] } ] } ] } ```